Hualian Co. announced that its affiliate Hualian Finance Co., Ltd. plans to apply for dissolution with the National Financial Regulatory Administration. Hualian Finance is a non-bank financial institution approved by the former China Banking Regulatory Commission. It is initiating dissolution procedures due to difficulties in meeting the group's strategic development needs and rising operating costs. Both Hualian Finance and Hualian Co. are controlled by Beijing Hualian Group Investment Holding Co., Ltd., making this a related-party transaction. The company stated that the dissolution of Hualian Finance will not have a material adverse impact on its overall business development or financial condition. In the first quarter of 2026, Hualian Co. reported revenue of 279 million yuan and a net loss attributable to the parent company of 37.49 million yuan.
Beijing Hualian Department Store Co LtdAffiliate Hualian Finance plans dissolution due to strategic difficulties and rising costs, indicating financial strain within the group.